Business Results & Forecast The Fiscal Year Ended … › download_file › get_file › FY2015_P...2 1. FY2015 Business Results 2. Business Situation in 3 segments

Confidential

Business Results & Forecast The Fiscal Year Ended March 31, 2015May 13, 2015 SCREEN Holdings Co., Ltd.

President (COO)Eiji Kakiuchi

Cautionary statement with respect to these materials;The earnings forecasts contained in these materials and communicated verbally, are made in accordance with currently available information and rational assumptions. SCREEN Holdings does not promise that the forecasts or estimates will be accurate. Therefore, it should be noted that actual results could differ significantly due to a variety of factors. Figures have been rounded down to eliminate amounts less than ¥100 million, except per share figures.

Agenda

1

1. FY2015 Business Results

2. Business Situation in 3 segments <SE, GP, FT>

3. Financial Situation

4. Progress of Three-year Medium-term Management Plan「Challenge2016」（1st year’s summary）

5. FY2016 Business Forecast

2






FY2014

Result Y/Y Forecast(Feb.9)

Full 1Q 2Q 3Q 4Q Full Full Full

235.9 52.4 60.0 49.8 75.3 237.6 1.6 238.0

163.1 35.1 40.6 34.6 47.0 157.4 (5.6) 158.5

52.1 12.1 15.0 12.1 16.2 55.7 3.5 55.5Graphic Arts Equip.（MT) 43.9 10.2 12.7 10.4 13.3 46.7 2.8 47.4PCB Equip.（PE) 8.2 1.9 2.3 1.7 2.8 8.9 0.7 8.1

19.8 4.9 4.0 2.8 11.9 23.7 3.9 23.00.8 0.1 0.1 0.1 0.1 0.6 (0.1) 1.0

8.9 2.2 4.4 3.3 7.0 17.1 8.2 15.0

3.8% 4.3% 7.5% 6.8% 9.3% 7.2% 3.4% 6.3%8.7 2.9 3.3 4.0 5.4 15.7 6.9 -2.7 0.4 1.4 0.1 0.7 2.8 0.0 -(0.4) (0.4) 0.2 (0.8) 1.4 0.3 0.7 -(2.2) (0.6) (0.5) 0.0 (0.5) (1.7) 0.4 -

8.3 2.3 4.2 2.8 6.7 16.0 7.7 14.2

5.4 1.5 3.1 3.1 4.3 12.1 6.7 11.2

Net sales

FY2015

GP

[to net sales ratio]

Result

Operating income

（Unit：Billions of JPY）

SE

Net income

FT　Other

GP

Other & Adjustments FT

Ordinary income

SE

FY2015 Business Results (Consolidated)

3

＊SE: Semiconductor solution business, GP: Graphic and precision solution business, FT: Finetech solution business

FY20153Q

FY20154Q

Difference(15/3 4Q – 15/3 3Q)

Net Sales 49.8 100.0% 75.3 100.0% ＋25.4 ＋51.1%

Operating Income 3.3 6.8% 7.0 9.3% ＋3.6 ＋106.9%

Ordinary Income 2.8 5.7% 6.7 8.9% ＋3.8 ＋137.6%

Net Income 3.1 6.3% 4.3 5.7% ＋1.1 ＋36.7%

FY2014Full

FY2015Full

Difference(15/3 Full – 14/3 Full)

Net Sales 235.9 100.0% 237.6 100.0% ＋1.6 ＋0.7%


Ordinary Income 8.3 3.6% 16.0 6.8% ＋7.7 ＋91.7%

Net Income 5.4 2.3% 12.1 5.1% ＋6.7 ＋123.7%

4

>>Year-on-year comparison

>>Comparison with the previous Quarter

FY2015 Business Results (Consolidated)



Quarterly Net Sales and Operating Income(Consolidated)

Net Sales Operating Income

FY2013 FY2014 FY2015NetSales 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

SE 51.6 28.0 23.5 37.3 43.3 32.3 36.7 50.6 35.1 40.6 34.6 47.0

GP 9.9 12.5 9.0 14.7 11.6 12.4 11.7 16.2 12.1 15.0 12.1 16.2

FT 4.8 2.0 2.0 3.0 4.1 6.8 3.3 5.5 4.9 4.0 2.8 11.9

Operatingincome 3.1 (4.4) (4.8) 1.2 2.2 0.8 1.5 4.3 2.2 4.4 3.3 7.0

0.0

30.0

60.0

90.0

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0(Unit : Billions of JPY) SE GP FT other Operating Income

(right)

5* Amounts for FY2013 in SE and FT have been reclassified with amounts calculated applying retroactively completion of installation basis

0.0

30.0

60.0

90.0

0.0

30.0

60.0

90.0

Quarterly Orders Received and Order Backlog(Consolidated)

Orders Received

(Unit : Billions of JPY) Order Backlog

FY2013 FY2014 FY2015Orders Received 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

SE 38.2 25.4 29.0 35.0 35.1 40.7 45.0 35.1 36.6 36.9 41.1 45.9

GP 11.2 10.5 10.8 13.4 12.9 12.2 15.3 13.4 14.1 13.2 13.7 16.0

FT 1.1 6.0 8.4 2.3 7.3 4.2 2.1 11.0 12.5 2.0 7.2 9.8

Order Backlog 70.1 69.5 83.1 78.7 75.0 80.6 91.2 78.4 89.3 81.7 94.1 90.7

SE GP FT other Order Backlog(right)

6* Amounts of order backlog for FY2013 in SE and FT have been reclassified with amounts calculated applying retroactively completion of installation basis

7






FY2014Full

FY2015Full


Net Sales 163.1 100.0% 157.4 100.0% (5.6) -3.5%


FY20153Q

FY20154Q


Net Sales 34.6 100.0% 47.0 100.0% ＋12.3 ＋35.5%


Business Environment <SE>

8

>>Topics



●Y on Y： Increased profit by enhancing the improvement of variable costratio, despite decreased sales.

●vs. Previous Q： Increased profit due to sales increase. Achieved 10% of operating income ratio for the full year.

●Orders received： Exceeded the Feb. forecast, amounted to JPY 45.9 bn.●Business environment： Investment was stably led by foundries.

Memory makers steadily expanded investment as well.●FYE2016 outlook：Forecast WFE to grow by around +5% in CY2015.

Continuously promote to enhance profitability.



0%

50%

100%FY

13/1

Q

FY13

/2Q

FY13

/3Q

FY13

/4Q

FY14

/1Q

FY14

/2Q

FY14

/3Q

FY14

/4Q

FY15

/1Q

FY15

/2Q

FY15

/3Q

FY15

/4Q

その他

ロジック

メモリー

ファウンドリー画像素子

Japan Taiwan ChinaSingapore USA Europe

0% 20% 40% 60% 80% 100%

41％

30%>DRAM: 22%>Flash: 8%

3%

13%

>>Quarterly Order Received Ratio by Device Application (Nonconsolidated)

13％

＊4Q Order received (consolidated): JPY 45.9 bn.

>>FY2015 4Q orders by region (Nonconsolidated)

計 100％

Korea

9

<SE> Quarterly Order Received Ratio by Device Application (Nonconsolidated)

FY20153Q

FY20154Q


Net Sales 12.1 100.0% 16.2 100.0% ＋4.1 ＋33.9%


FY2014Full

FY2015Full


Net Sales 52.1 100.0% 55.7 100.0% ＋3.5 ＋6.8%


Business Environment <GP>



10

>>Topics●Y on Y： Increase in sales and a slight increase in profit due to demand recovery

in CTP and POD, centering on Japan and Europe.●vs. Previous Q： Increased sales & improved profitability●Business environment： In Japan, a demand for replacement of CTP was firm.

Regarding overseas sales, POD was firm especially in theU.S. and showed POD sales growth in Europe as well.

●FY2016 outlook： Expect to improve profitability even with increased R&D expenses as having sales-increase effect as well.



FY2014Full

FY2015Full


Net Sales 19.8 100.0% 23.7 100.0% ＋3.9 ＋19.8%

Operating Income (0.4) -2.1% 0.3 1.4% ＋0.7 ー

FY20153Q

FY20154Q


Net Sales 2.8 100.0% 11.9 100.0% ＋9.1 ＋325.5%

Operating Income (0.8) -31.9% 1.4 12.0% ＋2.3 ー

11

●Y on Y： Increases both in sales and profit, achieving a return to the black for the first time in four years. Sales were firm both for production equipment for large-sized TV LCD panels toward China andproduction equipment for small- and medium-sized LCD panels for smartphones.

●vs. Previous Q： Operating income was significantly improved due to cost reduction and after-sales service (modification).

●Orders received： Received JPY 9.8 bn. in line with Feb. forecast. Expect an ongoing favorable orders both for large-sized and small- & medium-sized.

●Business environment： Investment toward production equipment for small- and medium-sized was firm, inaddition to those for large-sized TV LCD panels toward China. In addition to China,investment in Japan and Taiwan was firm as well.

●FY2016 outlook：Secured JPY 27.9 bn. order backlog as of end of March. Will be steady for the meantime.

Business Environment <FT>



>>Topics



Japan Taiwan China

0% 20% 40% 60% 80% 100%

0%

50%

100%

FY13

/1Q

FY13

/2Q

FY13

/3Q

FY13

/4Q

FY14

/1Q

FY14

/2Q

FY14

/3Q

FY14

/4Q

FY15

/1Q

FY15

/2Q

FY15

/3Q

FY15

/4Q

G8以上

G7

G6

G5

G4

G3以下

その他

Quarterly Orders Received by Generation(Nonconsolidated)＊ 4Q Order received (Consolidated) : JPY 9.8

>>FY2015 4Q orders by region (Nonconsolidated)

12

Korea

>>Quarterly Orders Received by Generation(Nonconsolidated)

13






40.6 38.6 39.9 40.742.69.8 6.9 7.6

61.2 78.5 73.1 70.170.3

70.9 45.2

39.937.6

40.4 34.2

25.6

34.3 46.530.829.128.9

11.3

9.3

55.0

41.045.0

0.0

100.0

200.0

300.0

2011/3 2012/3 2013/3 2014/3 2015/3

現金・預金受取手形・売掛金たな卸資産その他の流動資産有形固定資産無形固定資産・投資ほか

1.8

55.547.6 70.4

39.6

81.981.4 60.7 68.7

62.3

87.6 84.0 76.8111.5

87.0

1.9 2.96.7

9.626.0 23.7 21.3

28.4

26.241.3

0.0

100.0

200.0

300.0

2011/3 2012/3 2013/3 2014/3 2015/3

支払手形・買掛金有利子負債その他流動負債その他固定負債純資産

249.5

Equity Ratio 37.2% (2014/3) 44.4% (2015/3)

253.1 249.5232.3 232.3232.3 232.3238.8 238.8

253.1

14＊Amounts for 2012/3 and 2013/3 have been reclassified with amounts calculated applying retroactively completion of installation basis.

（Unit: Billions of JPY）

Assets Liabilities & Net Assets

（Unit: Billions of JPY）

ShipmentBasis Completion of

Installation BasisCompletion of Installation Basis

ShipmentBasis

Trend in B/S (Consolidated)

10.8

▲ 10.3

0.1

▲ 1.3

▲ 11.0

▲ 1.0 ▲ 2.0▲ 1.5▲ 1.6 ▲ 2.2▲ 1.1

9.9

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

2015/3 1Q 2015/3 2Q 2015/3 3Q 2015/3 4Q

営業CF 投資CF 財務CF

>>FY2015 Total Free Cash Flow: JPY (7.8) bn.

15

(Apr. - Jun.) (Jul. - Spt.) (Oct. - Dec.) (Jan. - Mar.)

Cash Flows (Consolidated)

(Unit : Billions of JPY)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

有利子負債現金及び預金ネット有利子負債

FY2010

FY2013 FY2014 FY2015

Jun. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar.

Interest-bearing debt 131.0 39.3 45.9 76.9 70.4 78.6 64.9 50.7 41.3 41.3 52.0 41.7 39.6

Cash and time deposit 50.2 27.0 29.7 42.4 40.4 55.7 40.8 35.0 34.2 29.8 28.5 30.2 25.6

Net interest-bearing debt 80.7 12.3 16.1 34.4 30.0 22.9 24.0 15.6 7.1 11.5 23.5 11.4 14.0

16

Interest-bearing Debt (Consolidated)(Unit: Billions of JPY)

17






Three-year Medium-term Management Plan and its Direction

■Directions to move forward

Three-year Medium-term Management Plan

「Challenge2016」 <First year’s summary>

→To achieve consistently higher earnings

→To launch businesses in new fields

→To strengthen financial standing

Further enhance areas of strength

18

Three targets：①Earnings structure reforms：Achieve operating income to net sales of 10% or above in the final year of the plan

➁Create new businesses: Generate profits in each of the four new business fields

③Strengthen financial standing：Achieve an equity ratio of 50% or above in the final year of the plan

Target 1： Earnings structure reforms：Achieve operatingincome to net sales of 10% or above in the final year of the plan

7.7%

10.0%

3.8%

7.2%

0.0%

5.0%

10.0%

FY2014 FY2015 FY2016 Forecast FY2017 Target

19

or above



●Improvement in variable cost ratio of mainstay product in each business (Accomplish it at all cost!!)

●Increase sales ratio both of high-value added products and after-sales services

●Thoroughly lower break-even sales

Target 2： Create new businesses (Aim to generate profits in each of the four new business fields)

20

>>In April 2015, a new organization was launched within HD (R&D + sales + marketing), centralized at R&D center, WHITE CANVAS RAKUSAI.

Most preceding and released product is going well.

Life science

>>Made an investment in iPS Portal, Inc. (March 2015)Accelerate product development in the field of regenerative medicine.

>>Sales of Cell3iMager, Establish sales networkin the U.S., Europe and Japan.3D cell culture spheroid counter

>>DP-i3000（Inkjet printer for tablets) Started to accept orders from April



IM-3100 (Automatic inspection system for forged part), Received positive response inin-car parts market,To phase to launch

Inspection and measuring

Printedelectronics

Expanding to such areas as in-car secondary battery (Lithium-ion battery) and other coating.

Energy

21

Process technology development and product development are in progress toward diversification of business model.

Target 2： Create new businesses (Aim to generate profits in each of the four new business fields)



22

32.8%

44.4%

37.2%34.4% 36.7%

FY2011 FY2012 FY2013 FY2014 FY2015



Target 3: Strengthen financial standing：Achieve an equity ratio of 50% or above in the final year of the plan

37.2％As of end of March 2014

44.4％As of end of March 2015The highest level after the Bankruptcy of Lehman Brothers

>>Changes in equity ratio

Enhancement of Corporate Value

Policy on shareholder returns

Target of a 25% consolidated shareholder

return ratio・paying close attention to

progress situation of medium-term plan and earnings performance

Raise ROE

Toward JPX-Nikkei 400・Profit ratio improvement・Well –balanced shareholdersʼ

equity control

Maximize FCF

・Secure investment resource to grow more・Strengthen financial durability


・Complete earnings structure reforms, Launch businesses in new fields, Strengthen financial standing

Challenge2016

Aim to raise the rating

23



24

2桁台持続を目標

10.00

3.00

7.00

0.00

10.00

FY2014 FY2015 Forecast FY2016 Forecast

Aim to continue double-digit ROE

With a target of a 25% consolidated shareholder return ratio, while paying close attention to progress situation of the Plan “Equity ratio of 50% or above” “Operating income to net sales of 10% or above” and earnings performance

Progress toward the Enhancement of Corporate Value

Management to enhance ROEEnhancement of Corporate Value

Maximize FCF

→Shorten a cash conversion cycle

Clarify a policy on shareholder returns

>>Changes in cash dividends per share (JPY)

25







FY2015 FY2016

1st HResult

2nd HResult

FullResult

1st HForecast

2nd HForecast

FullForecast

Net Sales 112.4 125.1 237.6 130.0 118.0 248.0

ＳＥ 75.7 81.6 157.4 83.5 76.5 160.0ＧＰ 27.2 28.4 55.7 29.5 29.5 59.0ＦＴ 9.0 14.7 23.7 16.5 10.5 27.0ＯＴ 0.3 0.3 0.6 0.5 1.5 2.0

Operating income 6.7 10.4 17.1 9.3 9.7 19.0

[to net sales ratio] 6.0% 8.3% 7.2% 7.2% 8.2% 7.7%

Ordinary income 6.5 9.5 16.0 8.8 9.7 18.5

Net income 4.6 7.4 12.1 6.8 7.2 14.0

*Assumed Exchange Rate>> USD1=115 yen, EUR1=130 yen*Forecast of annual cash dividends for FY2016>> JPY 10.00 per share (year-end cash dividend)

＊SE: Semiconductor solution business, GP: Graphic and precision solution business, FT: Finetech solution business

26

Business Forecast for FY2016 (Consolidated)

Business Forecast for FY2016

27

Challenge2016>> Focused themes in the second year

●To promote earnings structure reforms：Lower break-even sales, improve operating income to net sales

SE>> Improvement in variable cost ratio, Enhancement of after-sales service, Sales expansion of Frontier-Market

GP>> Sales expansion of new released POD product in the U.S. and Europe, Enhancement of recycling-oriented business model

FT>> Shift of business portfolio, Full-scale launch of new businesses, Expanding after-sales services

●Strengthen financial standing：Maximize free cash flows through the optimizationof working capital including reduced inventory, Further improvement of equity ratiowith enhancement of efficient use of assets including liquidation of cross-shareholdings

●Shareholder returns ratio：As per the policy, aims to achieve a target of 25%

●New business field：Aggressive investment in R&D and a new venture company

Documents

Business Results & Forecast The Fiscal Year Ended … › download_file › get_file › FY2015_P...2 1. FY2015 Business Results 2. Business Situation in 3 segments